Definitions and Service Credit
- Defines "active service" as service rendered as commissioned officer, enlisted man, cadet, probationary officer, trainee, or draftee receiving pay from the government.
- Includes civilian government service prior to retirement when crediting service, with limitations.
- Minimum of 10 years active military service required for retirement credit.
Retirement Eligibility and Conditions
- Voluntary retirement permitted after at least 20 years of satisfactory active service, subject to Presidential approval.
- Compulsory retirement at age 60 with 15 years active service or after 30 years satisfactory active service, unless extended by the President.
- Deferred compulsory retirement for statutory positions until tour completion.
- Transition provisions for personnel retiring under prior laws, allowing extended service periods during early years of this Decree.
Retirement Due to Death or Disability
- Military personnel with at least 20 years of service who die or suffer total permanent disability in line of duty considered retired for benefits.
- Optional retirement for non-total physical disability incurred in line of duty with at least 20 years service.
Separation Provisions
- Separation mandated for officers in permanent grades Captain, Major, Lieutenant Colonel after specified years in grade or age, with possible extension by the President.
- Officers found unfit by the AFP Efficiency and Separation Board may be separated.
- Separation for officers deferred for promotion twice.
- Survivorship separation benefits for personnel with less than 20 years service who die or are disabled in line of duty.
Retirement and Separation Benefits
- Option for a lump-sum gratuity or monthly retirement pay based on years of active service and grade.
- Retirement pay capped at 85% of monthly base and longevity pay of grade next higher than last permanent grade.
- Special rules for officers retired or separated under specific sections, affecting benefit computation.
- Survivors entitled to monthly annuity shares based on deceased retired/separated military personnel's pay.
- Separation pay based on service years and grade, with different rules for disabilities and less than 20 years service.
- Disability pensions provided with amounts graduated according to percentage of disability.
Definitions of Key Terms
- Total permanent physical disability defined as loss/use of limbs, eyes, ears, or mental faculties.
- Survivors defined in a hierarchy: surviving spouse, children, parents, siblings, with conditions about eligibility.
- "Line of duty" clarifies exclusion of misconduct or vices in death, injury, or illness eligibility.
- Active service year defined as twelve months.
General Provisions
- Retired personnel must contribute 4% pay monthly to AFP Retirement System for credited civilian service.
- Retirees are listed in AFP retired list; loss of citizenship removes retiree from the list and benefits.
- Retirees may be recalled to active duty and promoted, subject to compliance under Articles of War.
- Rights of retired/separated personnel aligned with active duty personnel.
- Retirement benefits are exempt from assignment, taxation, or attachment, except to settle military financial liabilities.
- Fraud in relation to benefits punishable by fines, imprisonment, and disqualification from public service.
- No reduction of existing retirement benefits under previous laws.
- Repeal or modification of inconsistent laws to effectuate this Decree.
Implementation
- The Decree took effect upon approval on September 10, 1979, under the authority of President Ferdinand E. Marcos.